We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Henry Schein (HSIC) to Report Q3 Earnings: What's in Store?
Read MoreHide Full Article
Henry Schein, Inc. (HSIC - Free Report) is scheduled to report third-quarter 2022 results on Nov 1, before market open.
In the last reported quarter, the company’s earnings of $1.16 surpassed the Zacks Consensus Estimate by 3.57%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 11.73%.
Let’s see how things have shaped up prior to this announcement.
Factors to Note
Dental Business
Henry Schein’s dental business is likely to have gained from improved patient traffic as COVID-led severity gradually declines globally. The business is likely to have benefited from strong global equipment sales, similar to the last reported quarter, as dentists continue to invest in their practices. The dental business is likely to have seen robust sales contributions from dental specialty products, specifically within the oral surgery category.
However, the company’s consumable merchandise internal sales growth in local currencies, excluding PP&E and COVID-related products,might have been impacted by the industrywide trend of staffing shortages in Q3.
Henry Schein, in July 2022, acquired Condor Dental. This acquisition is expected to extend Henry Schein’s foray into the Swiss market for its dental distribution business. We expect this buyout to have a beneficial impact on the company’s results for the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s third-quarter global Dental business revenues is pegged at $1.88 billion, suggesting a rise of 18.2% from the year-ago quarter’s reported figure.
Medical Business
The medical business is expected to have gained from improved U.S. patient traffic to physician offices, ultimate care sites and ambulatory surgical centers. The segment is likely to have witnessed continued demand for medical laboratory equipment and non-COVID point-of-care diagnostic tests, as it did in the previous quarter.
However, sales of personal protective equipment (PPE) products are likely to have continued the downward rally with declining COVID-19 cases globally in Q3 compared with the year-ago period. In this regard, Henry Schein earlier expected further pricing declines for gloves in the second half of 2022. Meanwhile, in terms of COVID-19 test sales, the company is likely to have witnessed lower COVID-19 testing demand in Q3, attributable to low infection rates. We expect this decrease in demand to have impacted the company’s third-quarter revenues.
The Zacks Consensus Estimate for the company’s third-quarter global Medical business revenues is pegged at $1.18 billion, suggesting a rise of 0.4% from the year-ago quarter reported figure.
Technology and Value-Added Services Business
Henry Schein’s technology and value-added services business is likely to have gained from continued strength in Henry Schein One, which provides one of the broadest product offerings of dental practice management and related software and services. The company is expected to have shown strength in its practice management business, including Dentrix and Dentrix Ascend.
Per management, the growth within Henry Schein One in the second quarter was primarily driven by a recovery in patient traffic to dental offices and growth within the company’s cloud-based solutions. Healthy demand from the company’s national DSO accounts for Dentrix Ascend and Dentally cloud-based solutions contributed to the growth. We expect this growth momentum to have continued in Q3, benefiting the business.
As of now, the Zacks Consensus Estimate for the company’s third-quarter global Technology and Valued-Added Services business revenues is pegged at $187 million, suggesting an improvement of 10.7% from the year-ago quarter’s reported figure.
The Estimate Picture
For third-quarter 2022, the Zacks Consensus Estimate for total revenues of $3.22 billion implies an improvement of 1.4% from the prior-year quarter’s reported figure.
The consensus estimate for earnings per share is pegged at $1.15, indicating an increase of 4.6% from the prior-year quarter’s reported figure.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. This is not the case as you can see:
Earnings ESP: Henry Schein has an Earnings ESP of -1.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana (HUM - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of #1. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
Image: Bigstock
Henry Schein (HSIC) to Report Q3 Earnings: What's in Store?
Henry Schein, Inc. (HSIC - Free Report) is scheduled to report third-quarter 2022 results on Nov 1, before market open.
In the last reported quarter, the company’s earnings of $1.16 surpassed the Zacks Consensus Estimate by 3.57%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 11.73%.
Let’s see how things have shaped up prior to this announcement.
Factors to Note
Dental Business
Henry Schein’s dental business is likely to have gained from improved patient traffic as COVID-led severity gradually declines globally. The business is likely to have benefited from strong global equipment sales, similar to the last reported quarter, as dentists continue to invest in their practices. The dental business is likely to have seen robust sales contributions from dental specialty products, specifically within the oral surgery category.
However, the company’s consumable merchandise internal sales growth in local currencies, excluding PP&E and COVID-related products,might have been impacted by the industrywide trend of staffing shortages in Q3.
Henry Schein, Inc. Price and EPS Surprise
Henry Schein, Inc. price-eps-surprise | Henry Schein, Inc. Quote
Henry Schein, in July 2022, acquired Condor Dental. This acquisition is expected to extend Henry Schein’s foray into the Swiss market for its dental distribution business. We expect this buyout to have a beneficial impact on the company’s results for the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s third-quarter global Dental business revenues is pegged at $1.88 billion, suggesting a rise of 18.2% from the year-ago quarter’s reported figure.
Medical Business
The medical business is expected to have gained from improved U.S. patient traffic to physician offices, ultimate care sites and ambulatory surgical centers. The segment is likely to have witnessed continued demand for medical laboratory equipment and non-COVID point-of-care diagnostic tests, as it did in the previous quarter.
However, sales of personal protective equipment (PPE) products are likely to have continued the downward rally with declining COVID-19 cases globally in Q3 compared with the year-ago period. In this regard, Henry Schein earlier expected further pricing declines for gloves in the second half of 2022. Meanwhile, in terms of COVID-19 test sales, the company is likely to have witnessed lower COVID-19 testing demand in Q3, attributable to low infection rates. We expect this decrease in demand to have impacted the company’s third-quarter revenues.
The Zacks Consensus Estimate for the company’s third-quarter global Medical business revenues is pegged at $1.18 billion, suggesting a rise of 0.4% from the year-ago quarter reported figure.
Technology and Value-Added Services Business
Henry Schein’s technology and value-added services business is likely to have gained from continued strength in Henry Schein One, which provides one of the broadest product offerings of dental practice management and related software and services. The company is expected to have shown strength in its practice management business, including Dentrix and Dentrix Ascend.
Per management, the growth within Henry Schein One in the second quarter was primarily driven by a recovery in patient traffic to dental offices and growth within the company’s cloud-based solutions. Healthy demand from the company’s national DSO accounts for Dentrix Ascend and Dentally cloud-based solutions contributed to the growth. We expect this growth momentum to have continued in Q3, benefiting the business.
As of now, the Zacks Consensus Estimate for the company’s third-quarter global Technology and Valued-Added Services business revenues is pegged at $187 million, suggesting an improvement of 10.7% from the year-ago quarter’s reported figure.
The Estimate Picture
For third-quarter 2022, the Zacks Consensus Estimate for total revenues of $3.22 billion implies an improvement of 1.4% from the prior-year quarter’s reported figure.
The consensus estimate for earnings per share is pegged at $1.15, indicating an increase of 4.6% from the prior-year quarter’s reported figure.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. This is not the case as you can see:
Earnings ESP: Henry Schein has an Earnings ESP of -1.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Charles River Laboratories International (CRL - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of #3. The company will release third-quarter 2022 results on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana (HUM - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of #1. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.